Yesterday, the Nasdaq Composite managed to close the day positive despite some pushback against the aggressive rate cuts expectations from Fed’s Waller. In fact, Treasury yields and the US Dollar rose across the board, but the Nasdaq Composite resisted the pressure. This might be a sign that the bullish momentum is still strong and market participants are more focused on the data rather than what the policymakers say.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite yesterday closed the day green as the market continues to eye a new high. There’s not much to glean from this timeframe as the price trades right in the middle of the two key levels, so we need to zoom in to get some clarity.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price has been consolidating right in the middle of the two key levels. From a risk management perspective, the buyers will have a much better risk to reward setup around the 14780 support where we can also find the confluence with the 50% Fibonacci retracement level and the red 21 moving average. The sellers, on the other hand, will want to see the price breaking lower to invalidate the bullish setup and position for a drop into the 14050 level.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the price broke below the trendline and the moving averages crossed to the downside. This might be a signal for a bigger pullback into the 14780 support, but the buyers will also closely watch the swing level around the 15000 level as a break above it should trigger a rally into the 15150 high.
Upcoming Events
Today, we will get the US Retail Sales and Industrial Production data, while tomorrow we will see the latest US Jobless Claims figures. On Friday, we conclude the week with the University of Michigan Consumer Sentiment survey.
